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It has now been decades since stem cell technology emerged as the next great breakthrough in modern medicine, with the bold potential for one day curing everything from heart disease to cancer. Today, that optimism doesn’t appear to have diminished.

It’s easy to recall the excitement. In the late 1990s, when stem cell research was still relatively unexplored but gathering pace, the hope surrounding future uses for such treatments appeared near limitless. Once greater advances had been made, it was often argued, doctors could one day inject patients with cells that have the ability to transform into any other type of cell, making it possible to grow whole new organs. In theory, any damaged area...